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Chapter 3

The detail of controls

4.1 Examples of controls

 Segregation of duties Separate (1) authorisation or initiation of the
transaction, (2) the handling of the asset and (3)
recording the transaction.

 Physical controls e.g. using a safe to hold cash

 Authorisation and e.g. spending limits
approval

 Management control Include top-level reviews and activity controls.

 Supervision Helps to ensure that individuals do the tasks they are
required to and perform them properly

 Organisational e.g. delegating authority, setting up responsibility
structure centres

 Arithmetic and e.g. double checking the figures in a sales invoice
accounting before sending it to a customer

 Personnel controls e.g. selection, induction and training of staff

Illustrations and further practice

Now try TYU 1 to 9 from Chapter 3

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